System, program product, and associated methods to autodraw for micro-credit attached to a prepaid card

ABSTRACT

A consumer is prequalified for a line of credit attached to a prepaid card by a lending institution. The lending institution computer makes available draws to the line of credit line in an authorization stream for a proposed purchase using the prepaid card as payment. When the line of credit is accessed, the prepaid card is loaded with an additional value equal to one or more preselected loan increments so that the prepaid card then has a new amount totaling a previous amount plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or equals the value of a proposed purchase. Next, a new value for the line of credit balance available is determined, accounting for value loaded onto the prepaid card and a preselected loan advance fee for each loan increment loaded onto the prepaid card.

RELATED APPLICATIONS

This application claims priority to and the benefit of: U.S. ProvisionalPatent Application Ser. No. 61/042,612, by Ahlers et al., titled“System, Program Product, and Associated Methods to Authorize Draw forMicro-Credit Attached to a Prepaid Card” filed on Apr. 4, 2008,incorporated herein by reference in its entirety. This application alsorelates to: U.S. Provisional Patent Application Ser. No. 61/016,213, bySorbe et al., titled “Transfer Account Systems, Computer ProgramProducts, and Associated Methods” filed on Dec. 21, 2007; U.S.Provisional Patent Application Ser. No. 61/052,454, by Sorbe et al.,titled “Transfer Account Systems, Computer Program Products, and Methodsto Prioritize Payments from Preselected Bank Account” filed May 12,2008; U.S. Provisional Patent Application Ser. No. 61/029,975, by Sorbeet al., titled “Methods To Advance Loan Proceeds On Prepaid Cards,Associated Systems and Computer Program Products” filed on Feb. 20,2008; U.S. Provisional Patent Application Ser. No. 61/042,624, by Croweet al., titled “System, Program Product, and Method to Authorize Drawfor Retailer Optimization” filed on Apr. 4, 2008; U.S. ProvisionalPatent Application Ser. No. 61/032,750, by Ahlers et al., titled“Methods, Program Product, and System for Micro-Loan Management” filedon Feb. 29, 2008; U.S. Provisional Patent Application Ser. No.61/060,559, by Galit et al., titled “Methods, Program Product, andSystem to Enhance Banking Terms Over Time” filed on Jun. 11, 2008; U.S.Provisional Patent Application Ser. No. 61/082,863, by Ahlers et al.,titled “System, Program Product, and Method For Debit Card and CheckingAccount Autodraw” filed on Jul. 23, 2008; U.S. Provisional PatentApplication Ser. No. 61/053,056, by Galit et al., titled “System,Program Product, and Method For Loading a Loan On a Pre-Paid Card” filedon May 14, 2008, all of which are each incorporated herein by referencein their entireties. This application also relates to: U.S. patentapplication Ser. No. 12/338,365, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,402, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,440, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,584, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and Computer-ImplementedMethods to Prioritize Payments from Preselected Bank Account” filed Dec.18, 2008; U.S. patent application Ser. No. 12/338,645, by Sorbe et al.,titled “Transfer Account Systems, Computer Program Products, andComputer-Implemented Methods to Prioritize Payments from PreselectedBank Account” filed Dec. 18, 2008; U.S. patent application Ser. No.12/389,749, by Sorbe et al., titled “Methods to Advance Loan Proceeds onPrepaid Cards, Associated Systems and Computer Program Products” filedon Feb. 20, 2009; PCT/US09/34692, by Sorbe et al., titled “Methods toAdvance Loan Proceeds on Prepaid Cards, Associated Systems and ComputerProgram Products” filed on Feb. 20, 2009; U.S. patent application Ser.No. 12/389,749, by Ahlers et al., titled “System, Program Product, andAssociated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on the same day herewith; U.S. patent applicationSer. No. 12/417,211, by Crowe et al., titled “System, Program Product,and Method to Authorize Draw for Retailer Optimization” filed on thesame day herewith; U.S. patent application Ser. No. 12/338,684, byAhlers et al., titled “Computer-Implemented Methods, Program Product,and System for Micro-Loan Management” filed on Dec. 18, 2008;PCT/US08/87660 by Ahlers et al., titled “Computer-Implemented Methods,Program Product, and System for Micro-Loan Management” filed on Dec. 19,2008; U.S. patent application Ser. No. 12/338,712, by Galit et al.,titled “Computer-Implemented Methods, Program Product, and System toEnhance Banking Terms Over Time” filed on Dec. 18, 2008; PCT/US08/87689by Galit et al., titled “Computer-Implemented Methods, Program Product,and System to Enhance Banking Terms Over Time” filed on Dec. 19, 2008;U.S. patent application Ser. No. 12/417,162, by Ahlers et al., titled“System, Program Product, and Method For Debit Card and Checking AccountAutodraw” filed on the same day herewith, all of which are eachincorporated herein by reference in their entireties.

BACKGROUND

1. Field of Invention

The present invention relates generally to the financial service andcard product industries, and, more particularly, to systems, computerprogram products, and associated methods of providing an automaticcredit line draw in preselected increments for a prepaid card.

2. Background

Millions of prepaid cards are issued each year in the United States. Itis known that many consumers rely primarily on cash and a prepaid cardaccount for their personal finances; these consumers often do not have atraditional checking, savings, or other bank deposit account, and theyusually do not write checks. These consumers typically do not have acredit card.

It is also known to use a prepaid card as payment for a proposedpurchase at a merchant. The consumer proposes a purchase and submits theprepaid card to the merchant so that the merchant can requestauthorization from a prepaid card processor associated with the prepaidcard. That is, the merchant checks that funds are available in theaccount associated with the prepaid card to cover the amount of theproposed purchase. This authorization process also provides anopportunity for security services, such as, for example, determining ifthe prepaid card has been reported as stolen. If there are insufficientfunds available in the account associated with the prepaid card to coverthe amount of the proposed purchase, the authorization request is deniedby the prepaid card processor, and the proposed purchase is rejected bythe merchant. Embarrassed and disappointed, many rejected consumersquickly give up and leave the merchant's premises so that even if a loanor credit were readily available with minimal effort, such as, forexample, by placing a short phone call to the prepaid card processor orto a lender, the proposed purchase is abandoned.

It is known that consumers can receive a loan without having a bankaccount and that proceeds from a loan can be credited to or posted to aprepaid card, Loans, including, e.g., payday loans, payday advances, andother short-term cash advances, however, involve hassles of applying forand obtaining the loan prior to the consumer having access to the funds.In addition, inherent in requesting a loan is determining the amount ofthe loan. If the loan amount is too small, the consumer may need toobtain an additional loan, with additional fees; if the loan amount istoo large, the consumer will needlessly pay extra interest.

SUMMARY OF INVENTION

In view of the foregoing, Applicant has recognized one or more sourcesof many of these problems and provides enhanced embodiments of methods,e.g., computerized methods, of advancing one or more preselected loanincrements to a prepaid card, and associated systems and computerprogram products. According to embodiments of the present invention, alending institution prequalifies a consumer for a line of credit for aprepaid card responsive to consumer underwriting data and predeterminedqualification parameters, makes available draws to the line of creditline in an authorization stream for a proposed purchase using theprepaid card as payment, and loads a prepaid card in preselected loanincrements so that the prepaid card then has a new amount that exceedsor equals the value of a proposed purchase. Next, for example, a newvalue for the line of credit balance available is determined, accountingfor value loaded onto the prepaid card and a preselected loan advancefee for each loan increment loaded onto the prepaid card.

Embodiments of the present invention provide, for example, acomputer-implemented method of advancing one or more preselected loanincrements to a prepaid card. The computer-implemented method includesinitiating consumer engagement of predetermined prepaid card approvaland authorizing advancing of one or more preselected loan increments bythe consumer upon approval by a lending institution up to apreauthorized total loan value. The preauthorized total loan valuerepresents a maximum amount of value available to the consumer from thelending institution via a line of credit associated with the prepaidcard as understood by those skilled in the art. The computer-implementedmethod also includes using the predetermined prepaid card to propose apurchase of one or more items, determining an amount of value ofproposed purchase (including, for example, coupons, discounts, instantrebates, sales tax, or a combination thereof as understood by thoseskilled in the art), determining an amount of value on the predeterminedprepaid card, and determining difference in amount of value of proposedpurchase and the amount of value on the predetermined prepaid card. Thecomputer-implemented method includes loading the predetermined prepaidcard with an additional value equal to one or more preselected loanincrements so that the prepaid card then has a new amount totaling theamount previously on the prepaid card plus the one or more preselectedloan increments and so that the new amount exceeds or, alternatively,equals the value of the proposed purchase. The computer-implementedmethod also includes determining a predetermined loan advance fee foreach increment of the one or more increments from the preauthorizedtotal loan value.

According to other embodiments of the present invention, the consumerinitiating engagement of approval can include, for example, the consumeropting in to a program with the lending institution using a writtencorrespondence from the consumer, a consumer selection on a website, atelephone conversation with an interactive voice response unit, atelephone conversation with a customer service representative, a mobilephone, or a combination thereof as understood by those skilled in theart. That is, embodiments of the present invention provide numerousflexible and convenient ways to initiate consumer engagement ofpredetermined prepaid card approval. A line of credit amount, forexample, can be established based on direct deposit and preselectedunderwriting formula, as understood by those skilled in the art, thatuse the amount of direct deposits, among other factors, to determine thesize of the credit line available.

In addition, embodiments of the present invention provide, for example,a computer-implemented method of accessing a line of credit with aprepaid card. The computer-implemented method includes a lendinginstitution prequalifying a consumer for a line of credit for a prepaidcard responsive to consumer underwriting data and predeterminedqualification parameters to thereby convert consumer underwriting datainto line of credit data. The computer-implemented method furtherincludes making available draws to the line of credit line in anauthorization stream for a proposed purchase using the prepaid card aspayment. The line of credit has a total loan value, a preselected loanincrement, a preselected loan advance fee associated with eachpreselected loan increment, and a line of credit balance available. Thecomputer-implemented method also includes loading the prepaid card withan additional value equal to one or more preselected loan increments sothat the prepaid card then has a new amount totaling a previous amountof value on the prepaid card plus the amount of value of the one or morepreselected loan increments and so that the new amount exceeds or,alternatively, equals the value of a proposed purchase. Thecomputer-implemented method further includes determining a new value forthe line of credit balance available. The new value is a previous valuefor the line of credit balance available minus the value loaded onto theprepaid card and minus fees, as each of the one or more preselected loanincrements loaded onto the prepaid card generates a preselected loanadvance fee.

By prequalifying the consumer for the line of credit responsive toconsumer underwriting data and predetermined qualification parametersand making draws to the line of credit available in the authorizationstream for a purchase using the prepaid card as payment, embodiments ofthe present invention advantageously allow a consumer to avoid theplanning and hassle associated with determining the amount of a loanprior to proposing a purchase. Previously, a consumer would have todetermine the amount of the loan necessary to fund the proposedpurchase, then secure the loan, and only then propose the purchase at amerchant using the prepaid card. If the information necessary todetermine the amount of the loan exists only at the merchant, multipletrips to the merchant may be required. Under the embodiments of thepresent invention, however, multiple trips are not required as theamount of the loan is determined, up to the total loan value, in theauthorization stream for a proposed purchase using the prepaid card aspayment, resulting in fewer rejections of proposed purchases, lessembarrassment for consumers, and reduced cost due to fewer abandonedsales as understood by those skilled in the art. Advantageously, underthe embodiments of the present invention, the consumer only pays forwhat is actually drawn.

By loading the prepaid card in preselected loan increments, embodimentsof the present invention advantageously can guarantee a fee structurethat is proportional to the amount of credit accessed. By comparison, anoverdraft fee charge by a bank for “bounced” check is often larger thanthe overdraft amount. Instead, the fee structure according toembodiments of the present invention more closely resembles an automatedteller machine (ATM) fee from a consumer's point of view as understoodby those skilled in the art. In addition, the use of preselected loanincrements can often result in value remaining on the prepaid card,allowing for small transactions without generating additional loan fees.For example, after of a load of a preselected loan increment of $50 andsubsequent purchase transaction, the balance on the prepaid card rangesfrom $0.00 to $49.99.

Embodiments of the present invention provide, for example, a system ofadvancing one or more preselected loan increments to a prepaid card. Thesystem includes a lending institution computer positioned to manage aline of credit associated with a prepaid card, i.e., to control accessto funds from a line of credit associated with a prepaid card; aplurality of merchant computers positioned to determine an amount ofvalue of a proposed purchase of one or more items; a plurality ofpoint-of-sale terminals, each in communication with a merchant computer;and a third computer associated with a customer prepaid card accountdefining a prepaid card processor. The prepaid card processor is incommunication with the lending institution computer and the plurality ofacquiring processors of the point-of-sale terminal through an electroniccommunications network. The prepaid card processor is positioned toprocess an authorization request for a proposed purchase of one or moreitems from an acquiring processor of the point-of-sale terminal. Thesystem further includes a computer program product associated with thelending institution computer as discussed herein.

Embodiments of the present invention provide, for example, a computerprogram product associated with the lending institution computer, storedon a tangible computer memory media, and operable on a computer, thecomputer program product comprising a set of instructions that, whenexecuted by the computer, cause the computer to perform variousoperations. The operations include prequalifying a consumer for a lineof credit for a prepaid card by the lending institution responsive toconsumer underwriting data and predetermined qualification parameters tothereby convert consumer underwriting data into line of credit data. Theoperations further include making available draws to the line of creditline in an authorization stream for a proposed purchase of one or moreitems using the prepaid card as payment. The proposed purchase data canbe, for example, received by the lending institution computer throughthe electronic communications network from a card reader deviceassociated with a point of sale terminal. The operations further includeloading the prepaid card with an additional value equal to one or morepreselected loan increments so that the prepaid card then has a newamount totaling a previous amount of value on the prepaid card plus theamount of value of the one or more preselected loan increments and sothat the new amount exceeds or, alternatively, equals the value of aproposed purchase to thereby convert line of credit data into a valueassociated with the prepaid card to thereby fund the proposed purchase.The operations also include determining a new value for the line ofcredit balance available, in which the new value is a previous value forthe line of credit balance available minus a value equal to the one ormore preselected loan increments loaded onto the prepaid card and minusa value equal to one or more preselected loan advance fees associatedwith each of the one or more preselected loan increments loaded onto theprepaid card.

Additional embodiments of the present invention include a computerprogram product stored on a tangible computer memory media, operable ona computer, and associated with a prepaid card processor.

According to another embodiment of the present invention, the financialinstitution can be a federally-chartered bank subject to federal bankinglaws and regulations and not subject to state banking laws andregulations. Also, the line of credit program can be bank product sothat the line of credit program complies with federal Regulation Z.

In addition, embodiments of the present invention include systems,program products, and associated methods of advancing one or morepreselected loan increments to a prepaid card and accessing a line ofcredit with a prepaid card as will be understood by those skilled in theart.

BRIEF DESCRIPTION OF DRAWINGS

So that the manner in which the features and benefits of the invention,as well as others which will become apparent, may be understood in moredetail, a more particular description of the invention brieflysummarized above may be had by reference to the embodiments thereofwhich are illustrated in the appended drawings, which form a part ofthis specification. It is also to be noted, however, that the drawingsillustrate only various embodiments of the invention and are thereforenot to be considered limiting of the invention's scope as it may includeother effective embodiments as well.

FIG. 1 is a schematic flow diagram of a method of advancing one or morepreselected loan increments to a prepaid card according to an embodimentof the present invention;

FIG. 2 is a schematic flow diagram of a method of accessing a line ofcredit with a prepaid card according to another embodiment of thepresent invention;

FIG. 3 is a schematic block diagram of a system of advancing one or morepreselected loan increments to a prepaid card according to an embodimentof the present invention;

FIG. 4 is a partial schematic diagram of a computer program productaccording to an embodiment of the present invention;

FIG. 5 is a partial schematic diagram of another computer programproduct according to another embodiment of the present invention;

FIG. 6 is a schematic diagram of loan set up flow according toembodiments of the present invention;

FIG. 7 is a schematic front elevational view of an embodiment of anaccess interface of a program product and system in the form of agraphical user interface of a display of a computer according to anembodiment of the present invention;

FIG. 8 is a schematic diagram of a payroll processor system according toan embodiment of the present invention;

FIG. 9 is a schematic diagram of a program product according to anembodiment of the present invention;

FIGS. 10A and 10B are respective front and back plan views of a prepaidcard according to an embodiment of the present invention;

FIG. 11 is a front plan view of a display screen of a computerdisplaying an excerpt of an account activity statement according to anembodiment of the present invention; and

FIG. 12 is a schematic flow diagram of a method of accessing a line ofcredit with a prepaid card according to another embodiment of thepresent invention.

DETAILED DESCRIPTION

The present invention will now be described more fully hereinafter withreference to the accompanying drawings, which illustrate embodiments ofthe invention. This invention may, however, be embodied in manydifferent forms and should not be construed as limited to theillustrated embodiments set forth herein; rather, these embodiments areprovided so that this disclosure will be thorough and complete, and willfully convey the scope of the invention to those skilled in the art.Like numbers refer to like elements throughout.

As illustrated in FIG. 1, embodiments of the present invention include amethod, e.g., a computerized method, of advancing one or morepreselected loan increments to a prepaid card. The method includesinitiating consumer engagement of predetermined prepaid card approval103. The method further includes authorizing advancing of one or morepreselected loan increments by the consumer upon approval by a lendinginstitution up to a preauthorized total loan value 105. Thepreauthorized total loan value represents a maximum amount of valueavailable to the consumer from the lending institution via a line ofcredit associated with the prepaid card as understood by those skilledin the art. The method also includes using the predetermined prepaidcard to propose a purchase of one or more items 107. The method furtherincludes determining amount of value of proposed purchase of the one ormore items 109. According to other embodiments of the present invention,determining amount of value of proposed purchase of the one or moreitems can include, for example, coupons, discounts, instant rebates,sales tax, or a combination thereof as understood by those skilled inthe art. The method also includes determining amount of value on thepredetermined prepaid card 111 and determining difference in amount ofvalue of proposed purchase of the one or more items and the amount ofvalue on the predetermined prepaid card upon proposed purchase 113. Themethod includes loading the predetermined prepaid card with anadditional value equal to one or more preselected loan increments sothat the prepaid card then has a new amount totaling the amountpreviously on the prepaid card plus the one or more preselected loanincrements and so that the new amount exceeds or, alternatively, equalsthe value of the proposed purchase 115. The method also includesdetermining a predetermined loan advance fee for each increment of theone or more increments from the preauthorized total loan value 117.

According to other embodiments of the present invention, the consumerinitiating engagement of approval can include, for example, the consumeropting in to a program with the lending institution using a writtencorrespondence from the consumer, a consumer selection on a website, atelephone conversation with an interactive voice response unit (IVRU), atelephone conversation with a customer service representative, a mobilephone, or a combination thereof as understood by those skilled in theart. That is, embodiments of the present invention provide numerousflexible and convenient ways to initiate consumer engagement ofpredetermined prepaid card approval. When launched as an accessiblewebsite, for example, the website can provide various software basedprogram product segments, as will be understood by those skilled in theart, from which bank products are accessible or downloadable. Thewebsite preferably includes secure site pages or portions, as understoodby those skilled in the art, as financial and personal data on or forcustomers may be provided by a customer. As described herein, thewebsite in an exemplary embodiment includes prepaid card managementcapabilities as understood by those skilled in the art to enhancequalification of customers and tracking of customer usage data orhistory. By including this feature, embodiments of other programproducts, methods, and systems can be enhanced and provided.

In an embodiment of the present invention involving prequalifying aconsumer for a line of credit from a bank or other lending institution,the lending institution can require or define, for example, thefollowing initial qualification parameters for a customer: (1) customershould be a prepaid card customer; (2) customer should provideemployment and wage verification through a direct deposit history; (3)customer should authorize bank initiated withdrawals from their prepaidcard; and (4) customer should have a history of at least one electronicdeposit. In addition, the following on-going criteria, for example,should be met: (1) customer's card account should be in good standing,not overdrawn, cancelled, or in default of the customer agreement; and(2) customer should continue to initiate electronic deposits to thecard. The bank or lending institution, for example, can elect to makethe account ineligible for a line of credit if an electronic depositceases. The bank can have a dedicated program manager qualify, approve,or authorize a customer or can use program product stored in memory tomake sure the criteria or parameters are satisfied or meet certainthresholds as selected by the bank or lending institution.

For example, as illustrated in FIG. 6, a customer C can go on-linethrough a computer or IVRU 22 in a system 20 to register at a websiteusing a program product according to embodiments of the presentinvention and launched from a server, e.g., at a loan processor,underwriting organization, bank, lending institution, other financialinstitution, payroll processing company, or other entity which canprovide the line of credit product, among others, as will be understoodby those skilled in the art. The form or qualification parameters can beconsistent with one or more underwriting organizations or institutionsor set/defined by the bank or lending institution.

As understood by those skilled in the art, a loan, micro-loan,repayment, line of credit, or other type of payment processor, such asprovided by First Data Corporation, Total Systems Services, Inc.,Fidelity National Information, Inc., or as custom developed by a bank, afinancial institution, or other organization, operates to provide acustomer interface on a line of credit or micro-loan request (see, e.g.,access interface 700 of FIG. 7 in the form of a computer display havinga graphical user interface) and determines and decides whether apotential or existing customer qualifies for a line of credit product.First Data Corporation, formerly First Data Resources, is a transactionprocessing company, including prepaid cards, and is headquartered inGreenwood Village, Colo., as understood by those skilled in the art.With headquarters located in Columbus, Ga., Total System Services, Inc.provides electronic payment services to financial institutions andcompanies, including consumer-finance, credit, debit, healthcare,loyalty, prepaid, chip and mobile payments, as understood by thoseskilled in the art. Headquartered in Jacksonville, Fla., FidelityNational Information, Inc. provides core processing for financialinstitutions, including card issuer, transaction processing, andoutsourcing services to financial institutions and retailers, asunderstood by those skilled in the art. The line of credit or loanprocessor 319, for example, can be outsourced by a bank if desired, andnumerous different loan processors or entities that handle this functioncan be used as well (see, e.g., FIG. 3 with computer server 319 handlingthe payment processor and interface access roles for customer lines ofcredit 321, for example). If the customer qualifies, the credentials canbe passed to a bank computer 307 or other financial institutioncomputer, and then a flag, code, notation, or other identifier can beassociated with a customer's profile in a database 308 so that when thecustomer desires to access the line of credit, e.g., through a customerpurchase transaction using the prepaid card, the process acknowledgesthe identifier to then allow incremental micro-loans on the line ofcredit to be granted as described herein. Notably, often a loan or othertype of payment processor is card processor specific, and in thisinstance, a dedicated card processor (see, e.g., prepaid card processor315 in FIG. 3, and this processor likewise can be associated withcomputers and have a customer prepaid card account 317 associated withor processed thereby as understood by those skilled in the art) can beused, but also as shown in FIG. 6 and described further in U.S.Provisional Patent Application Ser. No. 61/029,975 titled “Methods ToAdvance Loan Proceeds on Prepaid Cards, Associated Systems and ComputerProgram Products” filed on Feb. 20, 2008 and incorporated herein byreference methods can be used as well to handle card interface to avariety of card processors, including, e.g., Metavante Corporation(“Metavante”) of Milwaukee, Wis., as understood by those skilled in theart.

The customer transaction using a prepaid card, for example, can thencause the request for the loan advance through the line of creditprocessor 30 or other payment processor. The credit processor 30 thenposts notification of the micro-loan request through an applicationprogram interface (API) to post the loan advance in real time through anAPI Router 32 as understood by those skilled in the art. The API Router32 passes the request through a security firewall 35 which passes therequest through the API to a card processor 42 and particular processorAPI 44, such as, Metavante. The request data can be compared to flatfiles 46, 60, 70, e.g., data files that have no structural relationshipas understood by those skilled in the art, or flat files database sothat the bank or institution reconciles the loan transaction with thecustomer's line of credit or other account 62. Some card processors, forexample, provide additional processor interfaces or allow development ofadditional processor interfaces, as understood by those skilled in theart, (see, e.g., API to Program Manager 52). Program manager operations,for example, can be provided by various financial solution/programmanagement companies, such as AccountNow of San Ramon, Calif., asunderstood by those skilled in the art. A program manager 54, a cardprocessor API 56, and a card processor 58 can be used by the creditprocessor or other payment processor for a customer transaction asunderstood by those skilled in the art.

The following example illustrates an embodiment of the presentinvention. See also FIG. 11. A consumer initiates engagement through aphone call with a customer service representative and receives approvalby the lending institution for a line of credit for a prepaid card withpreselected loan increments of $20 with a $2.50 fee per increment. Theconsumer proposes to purchase items with a value of $42, but only has aprepaid card balance of $21. The consumer, however, also has $60available on the line of credit, with an outstanding balance of $0. Whenthe consumer proposes the purchase, the amount of value of the proposedpurchase is determined to be $42 (as this example assumes no coupons,discounts, instant rebates, or sales tax for illustrative purposes). Theamount of value on the prepaid card is determined to be $21. Then thedifference is determined to be $21. Next, two (2) preselected incrementsof $20 each, for a total value of $40, are loaded onto the prepaid cardso that the prepaid card then has a new amount, in this example $61,totaling the amount previously on the prepaid card ($21) plus the one ormore preselected loan increments (2×$20=$40) and so that the new amountexceeds or, alternatively, equals the value of the proposed purchase($61≧$42). The purchase is transacted, and the prepaid card balanceafter the purchase is $19 ($61−$42=$19). The loan fee is determined tobe $5 (2×$2.50=$5). The line of credit balance outstanding is now $45,which is calculated as a previous balance ($0) plus the value of thepreselected increments loaded onto the prepaid card ($40) and the valueof the loan fee ($5). Therefore, there remains $15 available on the lineof credit ($60-2×$20-2×$2.50 $15).

In other embodiments of the present invention, the lending institutioncan make available only a part of the preauthorized total loan valueavailable for loading onto the prepaid card, responsive to a consumerdetermination, so that the consumer retains maximum control. Forexample, the consumer determines to make available only $75 of thepreauthorized total loan value, of say $200. The amount of value of theproposed purchase is determined to be $98; the amount of value on theprepaid card is determined to be $20; and the difference is determinedto be $78. Because the difference is greater than the amount availablefor loading onto the prepaid card, authorization for the proposedpurchase is denied, and the proposed purchase is rejected.

As understood by those skilled in the art, by loading the prepaid cardonly in preselected loan increments, embodiments of the presentinvention advantageously can guarantee a fee structure that isproportional to the amount of credit accessed. By comparison, anoverdraft fee charge by a bank for “bounced” check is often by largerthan the overdraft amount. Instead, the fee structure according toembodiments of the present invention more closely resembles an automatedteller machine (ATM) fee. In addition, the use of preselected loanincrements can often result in value remaining on the prepaid card,allowing for small transactions without generating additional loan fees.For example, after of a load of a preselected loan increment of $50 andsubsequent purchase transaction, the balance on the prepaid card rangesfrom $0.00 to $49.99.

According to another embodiment of the present invention, the financialinstitution can be a federally-chartered bank subject to federal bankinglaws and regulations and not subject to state banking laws andregulations. Therefore, the federally-chartered financial institutionenjoys rate preemption; that is, state licensing requirements, as wellas regulations in many states that limit lending interest rates, arepreempted and do not apply to the federally-chartered financialinstitution. As understood by those skilled in the art, afederally-chartered financial institution can operate in every statewith a consistent implementation nationally rather than a state-by-stateapproach, can provide consumers with Regulation Z protection, and cancharge any loan or interest rate for the gap filling loans or immediatefinancing loans without regard to state law.

According to another embodiment of the present invention, the lendinginstitution can adjust the preauthorized total loan value and repaymentterms based on the performance of the consumer. That is, a consumer withgood repayment history can typically earn access to a larger line ofcredit.

As illustrated in FIG. 2, embodiments of the present invention include acomputer-implemented method of accessing a line of credit with a prepaidcard. The computer-implemented method includes prequalifying a consumerfor a line of credit for a prepaid card by a lending institution 203responsive to consumer underwriting data and predetermined qualificationparameters to thereby convert consumer underwriting data into line ofcredit data. The line of credit has a total loan value, a preselectedloan increment, a preselected loan advance fee associated with eachpreselected loan increment, and a line of credit balance available. Thecomputer-implemented method also includes making available draws to theline of credit line in an authorization stream for a proposed purchaseof one or more items using the prepaid card as payment when an amount ofvalue of the proposed purchase of the one or more items is greater thanan amount of value on the prepaid card 205. The proposed purchase datacan be, for example, received by the lending institution computerthrough the electronic communications network from a card reader deviceassociated with a point of sale terminal. The computer-implementedmethod further includes loading the prepaid card with an additionalvalue equal to one or more preselected loan increments so that theprepaid card then has a new amount totaling a previous amount of valueon the prepaid card plus the amount of value of the one or morepreselected loan increments and so that the new amount exceeds or,alternatively, equals the value of a proposed purchase 207 to therebyconvert line of credit data into a value associated with the prepaidcard to thereby fund the proposed purchase. The computer-implementedmethod also includes determining a new value for the line of creditbalance available, the new value being a previous value for the line ofcredit balance available minus a value equal to the one or morepreselected loan increments loaded onto the prepaid card and minus avalue equal to one or more preselected loan advance fees associated witheach of the one or more preselected loan increments loaded onto theprepaid card 209.

As understood by those skilled in the art, by prequalifying the consumerfor the line of credit and making draws to the line of credit availablein the authorization stream for a purchase using the prepaid card aspayment, embodiments of the present invention advantageously allow aconsumer to avoid the planning and hassle associated with determiningthe amount of a loan prior to proposing a purchase. Previously, aconsumer would have to determine the amount of the loan necessary tofund the proposed purchase, then secure the loan, and only then proposethe purchase at a merchant using the prepaid card. If the informationnecessary to determine the amount of the loan exists only at themerchant, multiple trips to the merchant may be required. Under theembodiments of the present invention, however, multiple trips are notrequired as the amount of the loan is determined, up to the total loanvalue, in the authorization stream for a proposed purchase using theprepaid card as payment, resulting in fewer rejections of proposedpurchases, less embarrassment for consumers, and reduced cost due tofewer abandoned sales as understood by those skilled in the art.Advantageously, under the embodiments of the present invention, theconsumer only pays for what is actually drawn.

As illustrated in FIG. 3, embodiments of the present invention include asystem of advancing one or more preselected loan increments to a prepaidcard. The system 300 includes a first computer associated with a lendinginstitution defining a lending institution computer 307. The lendinginstitution computer 307 can include, for example, input-output I/Odevices 306A; one or more processors 306B; memory 306C, such as,computer readable media; and a display 306D. The memory 306C of thelending institution computer 307 can include a computer program product400 as described herein and can include, for example, one or moredatabases containing account data files 308. The lending institutioncomputer 307 is positioned to manage a line of credit associated with aprepaid card, i.e., to control access to funds from a line of creditassociated with a prepaid card. The system 300 also includes a pluralityof second computers associated with a plurality of merchants 311defining a merchant computer 313. Each merchant computer 311 caninclude, for example, input-output I/O devices 314A; one or moreprocessors 314B; and memory 314C, such as, computer readable media. Eachmerchant computer 313 is positioned to determine an amount of value of aproposed purchase of one or more items. The system 300 further includesa plurality of point-of-sale terminals 312 associated with the pluralityof merchants 311. Each point-of-sale terminal 312 has a processordefining an acquiring processor and is in communication with a merchantcomputer 313. Prepaid card data can be read by swiping the card througha slot 310C past a reading head of a point-of-sale terminal 312. Thepoint-of-sale terminal 312 can also include a display 310A andinput/output (I/O) devices 310B e.g., a keypad. The system 300 can alsoinclude a third computer associated with a customer prepaid card account317 defining a prepaid card processor 315. The prepaid card processor315 is in communication with the lending institution computer 307 andthe plurality of acquiring processors of the point-of-sale terminal 312through an electronic communications network 309. The prepaid cardprocessor 315 is positioned to process an authorization request for aproposed purchase of one or more items from an acquiring processor ofthe point-of-sale terminal 312. The system 300 can also include aplurality of customer computers 303. Each customer computer 303 caninclude, for example, input-output I/O devices 304A; one or moreprocessors 304B; memory 304C, such as, computer readable media; and adisplay 304D. The memory 304C of the customer computer 303 can includean Internet browser 304E, a computer application used for accessingsites or information on a network, as understood by those skilled in theart. The system 300 further includes a computer program productassociated with the lending institution computer 307, stored on atangible computer memory media, and operable on a computer, the computerprogram product comprising a set of instructions that, when executed bythe computer, cause the computer to perform various operations asdiscussed herein.

As illustrated in FIG. 4, embodiments of the present invention include acomputer program product 400 associated with the lending institutioncomputer 402, stored on a tangible computer memory media 401, andoperable on a computer, the computer program product 400 comprising aset of instructions 403 that, when executed by the computer, cause thecomputer to perform various operations. The operations includeprequalifying a consumer for a line of credit for a prepaid card by thelending institution 405 responsive to consumer underwriting data andpredetermined qualification parameters to thereby convert consumerunderwriting data into line of credit data. The line of credit has atotal loan value, a preselected loan increment, a preselected loanadvance fee associated with each preselected loan increment, and a lineof credit balance available. The operations also include makingavailable draws to the line of credit line in an authorization streamfor a proposed purchase of one or more items using the prepaid card aspayment when an amount of value of the proposed purchase of the one ormore items is greater than an amount of value on the prepaid card 407.The proposed purchase data can be, for example, received by the lendinginstitution computer through the electronic communications network froma card reader device associated with a point of sale terminal. Theoperations further include loading the prepaid card with an additionalvalue equal to one or more preselected loan increments so that theprepaid card then has a new amount totaling a previous amount of valueon the prepaid card plus the amount of value of the one or morepreselected loan increments and so that the new amount exceeds or,alternatively, equals the value of a proposed purchase 409 to therebyconvert line of credit data into a value associated with the prepaidcard to thereby fund the proposed purchase. The operations also includedetermining a new value for the line of credit balance available, inwhich the new value is a previous value for the line of credit balanceavailable minus a value equal to the one or more preselected loanincrements loaded onto the prepaid card and minus a value equal to oneor more preselected loan advance fees associated with each of the one ormore preselected loan increments loaded onto the prepaid card 411.

As illustrated in FIG. 5, embodiments of the present invention include acomputer program product 500 stored on a tangible computer memory media501, operable on a computer, and associated with a prepaid cardprocessor 502, the computer program product 500 comprising a set ofinstructions 503 that, when executed by the computer, cause the computerto perform various operations. The operations include receivinginformation, e.g., data, for a line of credit for a prepaid card from alending institution computer by a prepaid card processor 505. Theinformation, e.g., data, can include a prequalification statusresponsive to consumer underwriting data and predetermined qualificationparameters, a total loan value, a preselected loan increment, apreselected loan advance fee associated with each preselected loanincrement, a line of credit balance available, and a combinationthereof. The operations also include making available draws to the lineof credit line on behalf of the lending institution computer in anauthorization stream for a proposed purchase of one or more items usingthe prepaid card as payment when an amount of value of the proposedpurchase of the one or more items is greater than an amount of value onthe prepaid card 507. The proposed purchase data can be, for example,received by prepaid card processor through the electronic communicationsnetwork from a card reader device associated with a point of saleterminal. The operations further include loading the prepaid card withan additional value equal to one or more preselected loan increments sothat the prepaid card then has a new amount totaling a previous amountof value on the prepaid card plus the amount of value of the one or morepreselected loan increments and so that the new amount exceeds or,alternatively, equals the value of a proposed purchase 509 to therebyconvert line of credit data into a value associated with the prepaidcard to thereby fund the proposed purchase. The operations also includenotifying the lending institution of the loading of the prepaid card sothat the line of credit balances on the lending institution computer andthe prepaid card processor are kept in sync 511.

According to embodiments of the present invention, the prepaid cardprocessor can communicate with the lending institution computer inreal-time, near real-time, in a batch process, daily, or periodically,as understood by those skilled in the art, to assess if a line of creditis available and if a draw is available, or to update line of creditbalances.

Other embodiments of the present invention, for example, can include astand-in account at the prepaid card processor associated with theline-of-credit or the lending institution to facilitate loading theprepaid card as will be understood by those skilled in the art. Astand-in account allows a consumer to have transactions approved evenwhen the primary authorization system is technically unavailable. Thisis achieved by one processor using data and instructions provided to itby the authorizing processor to “stand in” and approve or declinetransactions on the authorizing processor's behalf if the authorizingprocessor system is unavailable for real-time processing.

In other embodiments of the present invention, rather than loading theprepaid card in preselected loan increments with each incrementassociated with a preselected loan advance fee, the prepaid card can beloaded through a draw for an exact amount of purchase at a defined rate.In such embodiment, a standard consumer draw on the line of credit couldbe in $20 increments, but when an auto-draw is initiated by a purchaseat a point of sale or an automated teller machine (ATM) withdrawal, theexact amount of funds needed to be borrowed will be advanced. As aresult, for example, the fee amount assessed for a $20 draw might be$2.50, while if the amount borrowed on an auto-draw is only $10 the feewould be assessed ratably and would be $1.25 for the borrowing.

Embodiments of the present invention can, for example, include repaymentof at least portions of the line of credit responsive to a subsequentdirect deposit received for customer's benefit by the bank so that therepayment of the at least portions of the line of credit is deductedfrom the subsequent direct deposit. That is, loans made under a line ofcredit can be repaid out of the proceeds of a direct deposit. Recurringdirect deposits include, for example, employer payroll funds, federal orstate government electronic benefits payments, annuities, dividends,interest payments, lottery winnings, royalty payments, and other streamsof payments as understood by one skilled in the art.

Embodiments of systems, program products, and methods of the presentinvention can include, for example, for substantially all programs ifdesired, features such as any repayment of draws on the line of creditcan be automatically collected from the next electronic depositregardless of payment source. As payments are received, fees also can bepaid first then the payment applied to the oldest outstanding drawamount. When payments are received, total available line limit isrestored by the payment amount. If funds from the electronic deposit arenot sufficient to cover the outstanding balance, a partial repayment canbe made in the full amount of the electronic deposit resulting in anunpaid balance on the line. Repayment of the remaining unpaid balancecan be taken from subsequent electronic deposits until the line has beenpaid in full. Other cash equivalent repayment options also can beaccepted and processed by a line of credit processor as understood bythose skilled in the art.

It will also be understood by those skilled in the art that embodimentsof the line of credit product or program product, for example, can beassociated with a payroll processing company that processes directdeposits (see, e.g., FIG. 8). Embodiments of the program product andmethods can be added to product or service offerings by the payrollprocessing company 810 so that it can be offered to their customersindependent of bank by taking money or funds out at the source 810,e.g., as the payroll file is prepared 820 and before the direct depositis even originated, or loaded onto a prepaid card, for example. Theseembodiments can also allow the processing company 810 to have moredirect information on employment history. A payroll processing company810 can also use a loan processing system 840, loan processor, or otherpayment processor either within their facilities or as an outsourcingentity to allow the provision of enrolling and providing customerpayroll information 824 and for tracking and reconciling repayment orupdated customer payroll information with repayments pulled 844. Thepayroll can be sent, loaded or processed by a payroll processor 830 forACH transmittal, check generation, or card loading/providing, forexample (see, e.g., FIG. 8). These embodiments of associated methods,for example, can include providing a prepaid card to an employee whogets direct deposit to a demand deposit accounts (DDA) whereby theconsumer borrow funds from the service/product and has those fundsdirect deposited onto the card instantly and repaid by pulling fundsfrom the direct deposit file prior to sending to the other bank accountto repay the amount withdrawn. An example of and more details on howrepayment can be accomplished is illustrated in U.S. Provisional PatentApplication Ser. No. 61/016,213 titled “Transfer Account Systems,Computer Program Products, and Associated Methods” filed on Dec. 21,2007 which is incorporated herein by reference in its entirety.

Additionally, along these lines, any repayment of a line supersedesrepayment of a negative balance on a card due to force posts orsettlement transactions that cause the card to go negative. Any moniesremaining after a payment is received can be credited to the prepaidcard account. If payment takes the card balance to $0, any transactionsattempted with the card can be declined. Those transactions can besubject to any related decline fees. Repayment of a draw, for example,should not be taken from the principal balance on a card. That is, if acard balance is positive prior to a draw, only when the next electronicdeposit is initiated to the card will repayment be triggered. If a drawis not paid within the preselected time period, preferably days, e.g.,35 day timeframe, any amount owed can be taken from the principalbalance on a card.

Embodiments of the present invention provide, for example, a programproduct 900 associated with a bank or other financial or lendinginstitution implemented in modules or components, as illustrated in FIG.9. An underwriting analyzer and interface component 901 of a bankprogram product 900 can receive underwriting information, e.g., data,and make the determination whether to offer a line of credit or otherproduct to the customer as understood by those skilled in the art. Thatis, an underwriting analyzer and interface component 901 can respond toa consumer initiated engagement and can determine whether to prequalifythe consumer for a line of credit. Underwriting data can include whethera customer is an existing prepaid card customer 911; a direct deposithistory 912; a withdrawal authorization or approval, from an enrollmentin a line of credit program; a history of at least one electronicdeposit 914; an account being in good standing, not overdrawn,cancelled, or in default 915; continued direct deposit 916; and otherdata as understood by those skilled in the art. In addition, a loanadvance and fee manager module 903 deals with determining whether toadvance funds 921, providing loans in predetermined increments 922,calculating available credit 923, managing repayments 924, and otherassociated tasks as understood by those skilled in the art. Otherarchitectures and organizations will be understood by those skilled inthe art to be included within the embodiments of the present invention.Program products can be implemented in a variety of software andprogramming languages, including without limitation hypertext markuplanguage (“HTML”), Java, C, C++, XML, and others as understood by thoseskilled in the art.

As illustrated in FIGS. 10A, 10B, and 3, embodiments of the presentinvention can include, for example, a prepaid card 950 and apoint-of-sale terminal device 312, e.g., a card reader. As understood bythose skilled in the art, a prepaid card can have indicia 952, e.g.,logos, slogans, source identifiers, of a sponsoring bank and of aprepaid card processor; a serial number 954; and expiration date 956.The structures of various types of specific cards, e.g., magnetic stripe958, type of material, are well known to those skilled in the art andcan be used with embodiments of the present invention. Typically, a card950 is formed from plastic and has a magnetic stripe 958 affixed to theplastic through an application of heat. Those skilled in the art willunderstand that other embodiments besides a magnetic stripe can includeradio frequency identification devices (REID), smart chips, bar codes,and other similar devices. Embodiments of the present invention caninclude forming cards or receiving cards already formed. The magneticstripe card 950 can store information, or data, e.g., accountinformation, by modifying the magnetism of particles on the magneticstripe 958 on the card. The information can be read by swiping the cardthrough a slot 310C past a reading head of a card reader device 312,e.g., point-of-sale hardware. The point-of-sale terminal 312 can includea display 310A and input/output (I/O) devices 310B, e.g., a keypad.Typically, there are two tracks of information on a magnetic card 950used for financial transactions, known as tracks 1 and 2. In addition, athird track, known as track 3, can be available for magnetic stripecards. Tracks 1 and 3, if available, are typically recorded at 210 bitsper inch, while track 2 typically has a recording density of 75 bits perinch. Track 2, as typically encoded, was developed by the AmericanBankers Association (ABA) provides for 37 numeric data characters,including up to 19 digits for a primary account number (including a BankIdentification Number as understood by those skilled in the art), anexpiration date, a service code, and discretionary verification data,such as, a Personal Identification Number, or PIN. The information,e.g., data, on the card can be used, for example, to facilitate atransaction. For example, when the prepaid card 950 is swiped through aslot 310C, the data on the magnetic stripe 958 is read and processed bythe point-of-sale terminal 312, converting data stored in the magneticparticles on the card into data associated with readers 312 and alending institution computer 307. The point-of-sale terminal 312 canthen communicate through an electronic communications network 309 to,for example, a prepaid card processor 315 or a lending institutioncomputer 307. The point-of-sale terminal 312, e.g., card reader,communicates the account information, e.g., data, as read from the card,as well as other data, such as, an amount of a proposed transaction forapproval from the merchant computer 313. The other data, for example,can be entered by merchant personnel (e.g., an amount of thetransaction), the consumer (e.g., a PIN, or security code), or bankpersonnel (e.g., a security approval). The prepaid card processor 315 ora lending institution computer 307 can then utilize the accountinformation and other data to authorize or reject a purchase by, forexample, determining whether a proposed purchase by the consumer is lessthan an amount of funds remaining on the card. Moreover, optionalsecurity measures, including, for example, a mismatch between a PINsupplied by the consumer and a PIN stored on the card or in a database,can result in the rejection of a proposed transaction. The prepaid cardprocessor 315 or lending institution computer 307 then perform certainfunctions, including responding to the authorization request so that apoint-of-sale displays an indication of approval or rejection, resultingin a visual depiction to a merchant of the approval or rejection of theproposed transaction. Also, prepaid card processor 315 can, for example,write data to a database to record a purchase or other transaction(including advancing a loan from the line of credit), to debit availablefunds from an account associated with the prepaid card 950, and tocredit directly or indirectly a merchant for a purchase. In addition topurchase authorization, embodiments of the present invention also caninclude customer inquiries into recent transactions or a balanceinquiry, i.e., an amount of remaining value associated with the prepaidcard.

As illustrated in FIG. 11, embodiments of the present invention include,for example, providing data associated with a prepaid card account as avisual representation of account activity. For example, a customercomputer 303, through an Internet Browser 304E, (see FIG. 3) can displayon a display 304D an account activity statement 712 for acustomer-specific account 713, or set of accounts, with each transactionincluding, for example, a date 714A, a description 714B, a amountcredited to the account 714C, an amount debited from the account 714D, aresulting card balance 714E, a line of credit amount available 714F, anda line of credit outstanding balance 714G, or other such data asunderstood by those skilled in the art. For example, the visualrepresentation can include a card balance inquiry 715A. For example, thevisual representation can include loading the prepaid card with anadditional value equal to one or more preselected loan increments sothat the prepaid card then has a new amount totaling a previous amountof value on the prepaid card plus the amount of value of the one or morepreselected loan increments and so that the new amount exceeds or,alternatively, equals the value of a proposed purchase 715B. Forexample, the visual representation can include a purchase of goods 715C,wherein data associated with a prepaid card representing an amount ofvalue on the prepaid card is modified in an exchange for products,including goods or services, In addition, the visual representation caninclude a direct deposit 715D and also a loan repayment from directdeposit funds relatively instantaneously (or prior to) with the directdeposit funds being made available in the consumer's account 715E. Inother embodiments, loading the prepaid card 715B and an associatedpurchase of goods 715C can be represented as a single transaction;likewise, the direct deposit 715D and an associated loan repayment 715Ecan be represented as a single transaction. In addition, the visualrepresentation can include an increase in a total loan value 715F, i.e.,an amount available from the line of credit, responsive to consumerperformance data.

As illustrated in FIG. 12, embodiments of the present invention includea computer-implemented method of accessing a line of credit with aprepaid card. The computer-implemented method includes receiving datafor a line of credit for a prepaid card from a lending institutioncomputer by a prepaid card processor 253. The data can include, forexample, a prequalification status responsive to consumer underwritingdata and predetermined qualification parameters, a total loan value, apreselected loan increment, a preselected loan advance fee associatedwith each preselected loan increment, and a line of credit balanceavailable. The computer-implemented method also includes makingavailable draws to the line of credit line on behalf of the lendinginstitution computer in an authorization stream for a proposed purchaseof one or more items using the prepaid card as payment when an amount ofvalue of the proposed purchase of the one or more items is greater thanan amount of value on the prepaid card 255. The proposed purchase datacan, for example, be received by the lending institution computer or thepayroll processor through the electronic communications network and canoriginate from a card reader device associated with a point of saleterminal. The computer-implemented method further includes loading theprepaid card with an additional value equal to one or more preselectedloan increments so that the prepaid card then has a new amount totalinga previous amount of value on the prepaid card plus the amount of valueof the one or more preselected loan increments and so that the newamount exceeds or, alternatively, equals the value of a proposedpurchase 257 to thereby convert line of credit data into a valueassociated with the prepaid card to thereby fund the proposed purchase.The computer-implemented method also includes notifying the lendinginstitution of the loading of the prepaid card so that the line ofcredit balances on the lending institution computer and the prepaid cardprocessor are kept in sync 259.

A person having ordinary skill in the art will recognize that varioustypes of memory are readable by a computer such as described herein,e.g., lending institution, prepaid processor, or other computers withembodiments of the present invention. Examples of computer readablemedia include but are not limited to: nonvolatile, hard-coded type mediasuch as read only memories (ROMs), CD-ROMs, and DVD-ROMs, or erasable,electrically programmable read only memories (EEPROMs), recordable typemedia such as floppy disks, hard disk drives, CD-R/RWs, DVD-RAMs,DVD-R/RWs, DVD+R/RWs, flash drives, memory sticks, and other newer typesof memories, and transmission type media such as digital and analogcommunication links. For example, such media can include operatinginstructions, as well as instructions related to the system and themethod steps described above and can operate on a computer. It will beunderstood by those skilled in the art that such media can be at otherlocations instead of or in addition to the lending institution computerto store program products, e.g., including software, thereon.

This application claims priority to and the benefit of: U.S. ProvisionalPatent Application Ser. No. 61/042,612, by Ahlers et al., titled“System, Program Product, and Associated Methods to Authorize Draw forMicro-Credit Attached to a Prepaid Card” filed on Apr. 4, 2008,incorporated herein by reference in its entirety. This application alsorelates to: U.S. Provisional Patent Application Ser. No. 61/016,213, bySorbe et al., titled “Transfer Account Systems, Computer ProgramProducts, and Associated Methods” filed on Dec. 21, 2007; U.S.Provisional Patent Application Ser. No. 61/052,454, by Sorbe et al.,titled “Transfer Account Systems, Computer Program Products, and Methodsto Prioritize Payments from Preselected Bank Account” filed May 12,2008; U.S. Provisional Patent Application Ser. No. 61/029,975, by Sorbeet al., titled “Methods To Advance Loan Proceeds On Prepaid Cards,Associated Systems and Computer Program Products” filed on Feb. 20,2008; U.S. Provisional Patent Application Ser. No. 61/042,624, by Croweet al., titled “System, Program Product, and Method to Authorize Drawfor Retailer Optimization” filed on Apr. 4, 2008; U.S. ProvisionalPatent Application Ser. No. 61/032,750, by Ahlers et al., titled“Methods, Program Product, and System for Micro-Loan Management” filedon Feb. 29, 2008; U.S. Provisional Patent Application Ser. No.61/060,559, by Galit et al., titled “Methods, Program Product, andSystem to Enhance Banking Terms Over Time” filed on Jun. 11, 2008; U.S.Provisional Patent Application Ser. No. 61/082,863, by Ahlers et al.,titled “System, Program Product, and Method For Debit Card and CheckingAccount Autodraw” filed on Jul. 23, 2008; U.S. Provisional PatentApplication Ser. No. 61/053,056, by Galit et al., titled “System,Program Product, and Method For Loading a Loan On a Pre-Paid Card” filedon May 14, 2008, all of which are each incorporated herein by referencein their entireties. This application also relates to: U.S. patentapplication Ser. No. 12/338,365, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,402, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,440, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and AssociatedComputer-Implemented Methods” filed on Dec. 18, 2008; U.S. patentapplication Ser. No. 12/338,584, by Sorbe et al., titled “TransferAccount Systems, Computer Program Products, and Computer-ImplementedMethods to Prioritize Payments from Preselected Bank Account” filed Dec.18, 2008; U.S. patent application Ser. No. 12/338,645, by Sorbe et al.,titled “Transfer Account Systems, Computer Program Products, andComputer-Implemented Methods to Prioritize Payments from PreselectedBank Account” filed Dec. 18, 2008; U.S. patent application Ser. No.12/389,749, by Sorbe et al., titled “Methods to Advance Loan Proceeds onPrepaid Cards, Associated Systems and Computer Program Products” filedon Feb. 20, 2009; PCT/US09/34692, by Sorbe et al., titled “Methods toAdvance Loan Proceeds on Prepaid Cards, Associated Systems and ComputerProgram Products” filed on Feb. 20, 2009; U.S. patent application Ser.No. 12/389,749, by Ahlers et al., titled “System, Program Product, andAssociated Methods to Authorize Draw for Micro-Credit Attached to aPrepaid Card” filed on the same day herewith; U.S. patent applicationSer. No. 12/417,211, by Crowe et al., titled “System, Program Product,and Method to Authorize Draw for Retailer Optimization” filed on thesame day herewith; U.S. patent application Ser. No. 12/338,684, byAhlers et al., titled “Computer-Implemented Methods, Program Product,and System for Micro-Loan Management” filed on Dec. 18, 2008;PCT/US08/87660 by Ahlers et al., titled “Computer-Implemented Methods,Program Product, and System for Micro-Loan Management” filed on Dec. 19,2008; U.S. patent application Ser. No. 12/338,712, by Galit et al.,titled “Computer-Implemented Methods, Program Product, and System toEnhance Banking Terms Over Time” filed on Dec. 18, 2008; PCT/US08/87689by Galit et al., titled “Computer-Implemented Methods, Program Product,and System to Enhance Banking Terms Over Time” filed on Dec. 19, 2008;U.S. patent application Ser. No. 12/417,162, by Ahlers et al., titled“System, Program Product, and Method For Debit Card and Checking AccountAutodraw” filed on the same day herewith, all of which are eachincorporated herein by reference in their entireties.

Many modifications and other embodiments of the invention will come tothe mind of one skilled in the art having the benefit of the teachingspresented in the foregoing descriptions and the associated drawings.Therefore, it is to be understood that the invention is not to belimited to the illustrated embodiments disclosed, and that modificationsand other embodiments are intended to be included within the scope ofthe appended claims.

1. A system to allow a prepaid card user to access a line of creditcoupled to a prepaid card account when using a prepaid card, the systemcomprising: a computer associated with a lending institution defining alending institution computer, the lending institution computerconfigured to control access to a plurality of prepaid card accountsassociated with the lending institution and being associated with anelectronic communications network; and non-transitory computer memoryencoded with computer program operable on the lending institutioncomputer, computer program comprising: a first computer program toextend a line of credit coupled to at least one of the plurality ofprepaid card accounts defining an incremental line of credit qualifyingmodule, the incremental line of credit qualifying module comprising theinstructions of prequalifying, by the lending institution computer, aprepaid card user for a line of credit to be coupled to at least one ofthe plurality of prepaid card accounts associated with the lendinginstitution responsive to consumer underwriting data and predeterminedqualification parameters, and establishing the line of credit coupled tothe at least one of the plurality of the prepaid card accountsresponsive to approval of the line of credit, the line of credit havinga total credit limit and to be drawn in at least one of a plurality ofseparate predetermined loan increments each being equal in value andless than the total credit limit, and a second computer program to allowone or more draws to the line of credit in one or more of the pluralityof separate predetermined loan increments when using a prepaid card, thesecond computer program defining an incremental line of creditdispensing module and comprising the instructions of: determining, bythe lending institution computer responsive to receipt of transactiondata, when a prepaid card associated with the at least one of theplurality of the prepaid card accounts is being used as payment for aproposed purchase and when a value of the proposed purchase is greaterthan a value associated with the at least one of the plurality of theprepaid card accounts, determining, by the lending institution computer,responsive to the value of the proposed purchase being greater than thevalue associated with at least one of the plurality of the prepaid cardaccounts, a number of separate predetermined loan increments to be addedto the value associated with at least one of the plurality of theprepaid card accounts so that the number of separate predetermined loanincrements multiplied by the value of one of the plurality of separatepredetermined loan increments plus the value associated with the atleast one of the plurality of prepaid card accounts exceeds the value ofthe proposed purchase by less than the value of one of the plurality ofseparate predetermined loan increments, loading, by the lendinginstitution computer, the at least one of the plurality of the prepaidcard accounts with at least one of the plurality of separatepredetermined loan increments that corresponds with the number ofseparate predetermined loan increments to thereby define loadedpredetermined increments when the loaded predetermined increment and atotal value of a predetermined loan advance fee corresponding theretocollectively do not exceed the a line of credit balance available, thetotal value of the predetermined loan advance fee being equal to thepredetermined loan advance fee multiplied by the number of separatepredetermined loan increment, deducting, by the lending institutioncomputer, the value of the proposed purchase from the value associatedwith the at least one of the plurality of the prepaid card accountsresponsive to the loading step, the difference between the value of thepurchase and the value associated with the prepaid card account being nogreater than the value of one of the plurality of separate predeterminedloan increments, determining, by the lending institution computer, a newvalue of the line of credit balance available, the new value being aprevious value of the line of credit balance available minus the loadedpredetermined increments to the at least one of the plurality of theprepaid card accounts and minus the total value of the predeterminedloan advance fee, and determining, by the lending institution computer,a new value of a line of credit balance, the new value being a previousvalue of the line of credit balance plus the loaded predeterminedincrements loaded to the prepaid card account plus the total value ofthe predetermined loan advance fee, the total value of the predeterminedloan advance fee being less than the loaded predetermined incrementsloaded to the at least one of the plurality of prepaid card accounts. 2.A system as defined in claim 1, wherein computer program furthercomprising: a third computer program to repay the loaded predeterminedincrement defining an incremental line of credit repayment module, theincremental line of credit repayment module comprising the instructionsof: repaying, by the lending institution computer, at least a firstportion of the new value of the line of credit balance responsive to atleast one of the plurality of automatic deposits being available to thelending institution computer and prior to being made available to theprepaid card user, the difference between the new value of the line ofcredit balance minus the first portion of the new value of line ofcredit balance repaid being define as an unpaid balance, and deducting,by the lending institution computer, from the value associated with theat least one of the plurality of the prepaid card accounts a secondportion of the line of credit balance responsive to the unpaid balanceremaining outstanding for a predetermined amount of time.
 3. A system asdefined in claim 2, wherein the first portion of the new value of lineof credit balance repaid includes at least the total value of thepredetermined loan advance fee, wherein the value of the proposedpurchase includes adjustments for one or more of the following: coupons,discounts, instant rebates, and sales tax, wherein the lendinginstitution is a federally-chartered bank subject to federal bankinglaws and regulations and not subject to state banking laws andregulations, and wherein the line of credit is bank product so that theline of credit complies with federal Regulation Z.
 4. A system asdefined in claim 1, wherein the difference between the value of thepurchase and the value associated with the prepaid card account being nogreater than the value of one of the plurality of separate predeterminedloan increments and being loaded to the at least one of the plurality ofthe prepaid card accounts without generating additional fees for atleast a predetermined amount of time.
 5. A system as defined in claim 1,wherein the lending institution computer is further configured tocommunicate with a plurality of payroll processors associated with aplurality of employers, the plurality of payroll processors configuredto deposit a plurality of automatic deposits to the plurality of prepaidcard accounts associated with the lending institution, and wherein thevalue of the at least one of the plurality of prepaid card accountsprior to loading the loaded predetermined increments include at least aportion of at least one of the plurality of automatic deposits from atleast one of the plurality of payroll processors.
 6. A system as definedin claim 1, wherein the lending institution computer is furtherconfigured to communicate with a plurality of depository institutionscomputers associated with a plurality of depository institutions, theplurality of depository institutions computers configured to deposit aplurality of automatic deposits to the plurality of prepaid cardaccounts associated with the lending institution, and wherein the valueof the at least one of the plurality of prepaid card accounts prior toloading the loaded predetermined increments include at least a portionof at least one of the plurality of automatic deposits from at least oneof the plurality of payroll processors.
 7. A system as defined in claim1, wherein computer program further comprising: a third computer programto repay the loaded predetermined increments defining an incrementalline of credit repayment module, the incremental line of creditrepayment module comprising the instructions of: repaying, by thelending institution computer, at least a first portion of the new valueof the line of credit balance responsive to at least one of theplurality of automatic deposits being available to the lendinginstitution computer and prior to being made available to the prepaidcard user, the difference between the new value of the line of creditbalance minus the first portion of the new value of line of creditbalance repaid being define as an unpaid balance, and deducting, by thelending institution computer, from the value associated with the atleast one of the plurality of the prepaid card accounts at least asecond portion of the line of credit balance responsive to the unpaidbalance remaining outstanding for a predetermined amount of time.
 8. Asystem as defined in claim 6, wherein the first portion of the new valueof line of credit balance repaid includes at least the total value ofthe predetermined loan advance fee, wherein the value of the proposedpurchase includes adjustments for one or more of the following: coupons,discounts, instant rebates, and sales tax, wherein the lendinginstitution is a federally-chartered bank subject to federal bankinglaws and regulations and not subject to state banking laws andregulations, and wherein the line of credit is bank product so that theline of credit complies with federal Regulation Z.
 9. Non-transitorycomputer memory encoded with computer program and operable on a computerassociated with a lending institution and configured to control accessto a plurality of prepaid card accounts associated with the lendinginstitution thereby defining a lending institution computer, thecomputer program operable to allow a prepaid card user to access a lineof credit coupled to a prepaid card account when using a prepaid card,the computer program comprising: a first computer program to extend aline of credit coupled to at least one of the plurality of prepaid cardaccounts defining an incremental line of credit qualifying module, theincremental line of credit qualifying module comprising the instructionsof: prequalifying, by the lending institution computer, a prepaid carduser for a line of credit to be coupled to at least one of the pluralityof prepaid card accounts associated with the lending institutionresponsive to consumer underwriting data and predetermined qualificationparameters, and establishing the line of credit coupled to the at leastone of the plurality of the prepaid card accounts responsive to approvalof the line of credit, the line of credit having a total credit limitand to be drawn in at least one of a plurality of separate predeterminedloan increments each being equal in value and less than the total creditlimit, and a second computer program to allow one or more draws to theline of credit in one or more of the plurality of separate predeterminedloan increments when using a prepaid card, the second computer programdefining an incremental line of credit dispensing module and comprisingthe instructions of: determining, by the lending institution computerresponsive to receipt of transaction data, when a prepaid cardassociated with the at least one of the plurality of the prepaid cardaccounts is being used as payment for a proposed purchase and when avalue of the proposed purchase is greater than a value associated withthe at least one of the plurality of the prepaid card accounts,determining, by the lending institution computer, responsive to thevalue of the proposed purchase being greater than the value associatedwith at least one of the plurality of the prepaid card accounts, anumber of separate predetermined loan increments to be added to thevalue associated with at least one of the plurality of the prepaid cardaccounts so that the number of separate predetermined loan incrementsmultiplied by the value of one of the plurality of separatepredetermined loan increments plus the value associated with the atleast one of the plurality of prepaid card accounts exceeds the value ofthe proposed purchase by less than the value of one of the plurality ofseparate predetermined loan increments, loading, by the lendinginstitution computer, the at least one of the plurality of the prepaidcard accounts with at least one of the plurality of separatepredetermined loan increments that corresponds with the number ofseparate predetermined loan increments to thereby define loadedpredetermined increments when the loaded predetermined increment and atotal value of a predetermined loan advance fee corresponding theretocollectively do not exceed the a line of credit balance available, thetotal value of the predetermined loan advance fee being equal to thepredetermined loan advance fee multiplied by the number of separatepredetermined loan increment, deducting, by the lending institutioncomputer, the value of the proposed purchase from the value associatedwith the at least one of the plurality of the prepaid card accountsresponsive to the loading step, the difference between the value of thepurchase and the value associated with the prepaid card account being nogreater than the value of one of the plurality of separate predeterminedloan increments, determining, by the lending institution computer, a newvalue of the line of credit balance available, the new value being aprevious value of the line of credit balance available minus the loadedpredetermined increments to the at least one of the plurality of theprepaid card accounts and minus the total value of the predeterminedloan advance fee, and determining, by the lending institution computer,a new value of a line of credit balance, the new value being a previousvalue of the line of credit balance plus the loaded predeterminedincrements loaded to the prepaid card account plus the total value ofthe predetermined loan advance fee, the total value of the predeterminedloan advance fee being less than the loaded predetermined incrementsloaded to the at least one of the plurality of prepaid card accounts.10. Non-transitory computer memory as defined in claim 9, whereincomputer program further comprising: a third computer program to repaythe loaded predetermined increment defining an incremental line ofcredit repayment module, the incremental line of credit repayment modulecomprising the instructions of: repaying, by the lending institutioncomputer, at least a first portion of the new value of the line ofcredit balance responsive to at least one of the plurality of automaticdeposits being available to the lending institution computer and priorto being made available to the prepaid card user, the difference betweenthe new value of the line of credit balance minus the first portion ofthe new value of line of credit balance repaid being define as an unpaidbalance, and deducting, by the lending institution computer, from thevalue associated with the at least one of the plurality of the prepaidcard accounts a second portion of the line of credit balance responsiveto the unpaid balance remaining outstanding for a predetermined amountof time.
 11. Non-transitory computer memory as defined in claim 10,wherein the first portion of the new value of line of credit balancerepaid includes at least the total value of the predetermined loanadvance fee, wherein the value of the proposed purchase includesadjustments for one or more of the following: coupons, discounts,instant rebates, and sales tax, wherein the lending institution is afederally-chartered bank subject to federal banking laws and regulationsand not subject to state banking laws and regulations, and wherein theline of credit is bank product so that the line of credit complies withfederal Regulation Z.
 12. Non-transitory computer memory defined inclaim 9, wherein the lending institution computer is further configuredto communicate with a plurality of depository institutions computersassociated with a plurality of depository institutions, the plurality ofdepository institutions computers configured to deposit a plurality ofautomatic deposits to the plurality of prepaid card accounts associatedwith the lending institution, and wherein the value of the at least oneof the plurality of prepaid card accounts prior to loading the loadedpredetermined increments include at least a portion of at least one ofthe plurality of automatic deposits from at least one of the pluralityof depository institution computers.
 13. Non-transitory computer memoryas defined in claim 9, wherein the difference between the value of thepurchase and the value associated with the prepaid card account being nogreater than the value of one of the plurality of separate predeterminedloan increments and being loaded to the at least one of the plurality ofthe prepaid card accounts without generating additional fees for atleast a predetermined amount of time.
 14. A computer-implemented methodto perform a first process of extending a line of credit coupled to atleast one of a plurality of prepaid card accounts and a second processof allowing one or more draws to the line of credit in one or more of aplurality of separate predetermined loan increments when using a prepaidcard, the computer-implemented method comprising: prequalifying, by acomputer associated with a lending institution and configured to controlaccess to a plurality of prepaid card accounts associated with thelending institution thereby defining a lending institution computer, aprepaid card user for a line of credit to be coupled to at least one ofthe plurality of prepaid card accounts associated with the lendinginstitution responsive to consumer underwriting data and predeterminedqualification parameters, establishing the line of credit coupled to theat least one of the plurality of the prepaid card accounts responsive toapproval of the line of credit, the line of credit having a total creditlimit and to be drawn in at least one of a plurality of separatepredetermined loan increments each being equal in value and less thanthe total credit limit, determining, by the lending institution computerresponsive to receipt of transaction data, when a prepaid cardassociated with the at least one of the plurality of the prepaid cardaccounts is being used as payment for a proposed purchase and when avalue of the proposed purchase is greater than a value associated withthe at least one of the plurality of the prepaid card accounts,determining, by the lending institution computer, responsive to thevalue of the proposed purchase being greater than the value associatedwith at least one of the plurality of the prepaid card accounts, anumber of separate predetermined loan increments to be added to thevalue associated with at least one of the plurality of the prepaid cardaccounts so that the number of separate predetermined loan incrementsmultiplied by the value of one of the plurality of separatepredetermined loan increments plus the value associated with the atleast one of the plurality of prepaid card accounts exceeds the value ofthe proposed purchase by less than the value of one of the plurality ofseparate predetermined loan increments, loading, by the lendinginstitution computer, the at least one of the plurality of the prepaidcard accounts with at least one of the plurality of separatepredetermined loan increments that corresponds with the number ofseparate predetermined loan increments to thereby define loadedpredetermined increments when the loaded predetermined increment and atotal value of a predetermined loan advance fee corresponding theretocollectively do not exceed the a line of credit balance available, thetotal value of the predetermined loan advance fee being equal to thepredetermined loan advance fee multiplied by the number of separatepredetermined loan increment, deducting, by the lending institutioncomputer, the value of the proposed purchase from the value associatedwith the at least one of the plurality of the prepaid card accountsresponsive to the loading step, the difference between the value of thepurchase and the value associated with the prepaid card account being nogreater than the value of one of the plurality of separate predeterminedloan increments, determining, by the lending institution computer, a newvalue of the line of credit balance available, the new value being aprevious value of the line of credit balance available minus the loadedpredetermined increments to the at least one of the plurality of theprepaid card accounts and minus the total value of the predeterminedloan advance fee, and determining, by the lending institution computer,a new value of a line of credit balance, the new value being a previousvalue of the line of credit balance plus the loaded predeterminedincrements loaded to the prepaid card account plus the total value ofthe predetermined loan advance fee, the total value of the predeterminedloan advance fee being less than the loaded predetermined incrementsloaded to the at least one of the plurality of prepaid card accounts.15. A computer-implemented method as defined in claim 14, wherein thelending institution computer is further configured to communicate with aplurality of payroll processors associated with a plurality ofemployers, the plurality of payroll processors configured to deposit aplurality of automatic deposits to the plurality of prepaid cardaccounts associated with the lending institution, and wherein the valueof the at least one of the plurality of prepaid card accounts prior toloading the loaded predetermined increments include at least a portionof at least one of the plurality of automatic deposits from at least oneof the plurality of payroll processors.
 16. A computer-implementedmethod as defined in claim 14, wherein computer-implemented methodfurther comprising: repaying, by the lending institution computer, atleast a first portion of the new value of the line of credit balanceresponsive to at least one of the plurality of automatic deposits beingavailable to the lending institution computer and prior to being madeavailable to the prepaid card user, the difference between the new valueof the line of credit balance minus the first portion of the new valueof line of credit balance repaid being define as an unpaid balance, anddeducting, by the lending institution computer, from the valueassociated with the at least one of the plurality of the prepaid cardaccounts a second portion of the line of credit balance responsive tothe unpaid balance remaining outstanding for a predetermined amount oftime.
 17. A computer-implemented method as defined in claim 16, whereinthe first portion of the new value of line of credit balance repaidincludes at least the total value of the predetermined loan advance fee,wherein the value of the proposed purchase includes adjustments for oneor more of the following: coupons, discounts, instant rebates, and salestax, wherein the lending institution is a federally-chartered banksubject to federal banking laws and regulations and not subject to statebanking laws and regulations, and wherein the line of credit is bankproduct so that the line of credit complies with federal Regulation Z.18. A computer-implemented method defined in claim 14, wherein thelending institution computer is further configured to communicate with aplurality of depository institutions computers associated with aplurality of depository institutions, the plurality of depositoryinstitutions computers configured to deposit a plurality of automaticdeposits to the plurality of prepaid card accounts associated with thelending institution, and wherein the value of the at least one of theplurality of prepaid card accounts prior to loading the loadedpredetermined increments include at least a portion of at least one ofthe plurality of automatic deposits from at least one of the pluralityof depository institution computers.
 19. A computer-implemented methodas defined in claim 18, wherein the first portion of the new value ofline of credit balance repaid includes at least the total value of thepredetermined loan advance fee, wherein the value of the proposedpurchase includes adjustments for one or more of the following: coupons,discounts, instant rebates, and sales tax, wherein the lendinginstitution is a federally-chartered bank subject to federal bankinglaws and regulations and not subject to state banking laws andregulations, and wherein the line of credit is bank product so that theline of credit complies with federal Regulation Z.
 20. Acomputer-implemented method as defined in claim 14, wherein thedifference between the value of the purchase and the value associatedwith the prepaid card account being no greater than the value of one ofthe plurality of separate predetermined loan increments and being loadedto the at least one of the plurality of the prepaid card accountswithout generating additional fees for at least a predetermined amountof time.